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Savills raises Singapore investment sales forecast to $35b

Low rates and capital inflows support the 2026 outlook.

Singapore’s real estate investment sales are expected to rise in 2026, with Savills lifting its full-year forecast to $35b to $40b from $34b on the back of low interest rates, continued capital inflows, and strong first-quarter momentum.

The consultancy said private capital should remain a key demand driver, particularly from family offices, private funds, and high-net-worth investors seeking stable returns and capital preservation in a lower-rate environment.

It added that Singapore’s safe-haven status and transparent regulatory framework should continue to attract capital into the market.

Savills said developers are also likely to stay active in land acquisitions as they replenish land banks after strong new home sales, although bidding for government land sale sites is expected to remain selective.

It said developers would continue to focus on sites with strong catchments, clear micro-location advantages, and manageable development risks.

In the commercial market, office and retail assets are expected to be among the more resilient sectors, supported by low borrowing costs.

Savills also said mixed-use projects should feature more prominently, as developers see such sites as offering stronger marketing appeal for residential launches, which should keep tender activity healthy.

The consultancy said the main downside risk to its forecast would be an escalation of the Iran conflict into a prolonged energy crisis, which could trigger a sharp economic slowdown and renewed upward pressure on interest rates.

Barring that scenario, it expects Singapore’s investment market to remain fundamentally resilient through the rest of the year.

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